A Budget Requiring Society to Indicate its Choice

by swisscham in Consulting, Legal, Services, Tax

Agnes Chan, Managing Partner for Hong Kong and Macau, EY, said: ÒBased on different assumptions and scenarios, the Working Group on Long-Term Fiscal Planning set up by the Financial Secretary warned that a structural deficit could surface in Hong Kong within 7 years. However, given that the Group forecasts that the projected government revenue for 2041/42 would be 19.8% of Hong KongÕs GDP, the dreaded structural deficit could be avoided if Hong Kong adheres to its long tried-and-tested policy of pursuing fiscal discipline. One key plank of Hong Kong’s fiscal discipline has been to maintain public expenditure within 20% of GDP. If for whatever reason future public expenditure exceeds 20% of GDP on an annual basis Hong Kong society as a whole will face a painful and difficult choice, namely whether to reduce public expenditure, increase revenue by taxation within the framework of the Basic Law, or run the risk of a structural deficit.Ó

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Your Swiss Business Platform in China

SwissCham China has roughly 600 company members. Our Chamber maintains a strong relationship with the Embassy of Switzerland, Switzerland Global Enterprise, Swissnex and Switzerland Tourism. As the representative of the Swiss companies established in China, our goal is to help you to increase your business and visibility, especially amongst the Sino-Swiss business community.

Become A Member

Sign Up For Our Newsletter

  • This field is for validation purposes and should be left unchanged.
July 17, 2023
Published By s-ge.com in Business
July 16, 2023
Published By chinadaily.com.cn in Engineering / Manufacturing
July 13, 2023
Published By Consulate General of Switzerland in Guangzhou in Engineering / Manufacturing
July 3, 2023
Published By sbfi.admin.ch in Bilateral Relations